All Forum Posts by: Lucy Can

Thank you @Links Weygrant. Your explanation makes sense. I switched to Schedule C and was able to enter the 2 1099-S into the income section and the rest of it all went into the expenses: professional services, Interest payments, commissions (for realtors), supplies(concessions on electronics and blinds) etc. Entering the land cost was tricky, but I added it to Miscellaneous Expenses. Since the income is short term, the taxes owed ended up being higher. As you mentioned, We also had to pay Self Employment Tax.  

The LLC is solely owned by me and my spouse so it is a joint tax return with the LLC being a pass through entity. We also had to report sale from other long term rental properties. Both of us also work full time for a large corporation and had to report income from our full time jobs as well.

We bought a single family home near downtown Denver, gave it to a builder for constructing a duplex after doing a quit claim to an LLC in 2018. The Duplex finished building in Summer 2019 and we sold it in fall 2019. We got a 1099-S form for our LLC regarding the sale of each side of the duplex. I am using turbotax to file my taxes in 2020. In Turbotax I was reporting the sales under "Sale of Business Property" by reporting the sale price and the basis as the price of the land plus plus enhancements from the builder. I called the Turbotax CPA support to make sure that it is the right place. They are trying to convince me that this is a business and I need file Schedule E with expenses and profit. Turbotax support is claiming that I need to retroactively add the land as an expense in previous tax returns. Further more I need to issue 1099-misc to anyone that has anything to do with the property.

Almost all the work was done by the builder by doing a draw from a construction loan. After the properties went under contract we made some concessions in terms of electronics, smart home equipment, doors and locks etc.

Does it not make sense to file for taxes under Sale of Business Property, since the property was bought as a single family and converted into a duplex? Or do we have to file for taxes using Schedule E for business.

Any help is appreciated.

We bought a single family home near downtown Denver, gave it to a builder for constructing a duplex after doing a quit claim to an LLC in 2018. The Duplex finished building in Summer 2019 and we sold it in fall 2019. We got a 1099-S form for our LLC regarding the sale of each side of the duplex. I am using turbotax to file my taxes in 2020. In Turbotax I was reporting the sales under "Sale of Business Property" by reporting the sale price and the basis as the price of the land plus plus enhancements from the builder. I called the Turbotax CPA support to make sure that it is the right place. They are trying to convince me that this is a business and I need file Schedule E with expenses and profit. Turbotax support is claiming that I need to retroactively add the land as an expense in previous tax returns. Further more I need to issue 1099-misc to anyone that has anything to do with the property.

Almost all the work was done by the builder by doing a draw from a construction loan. After the properties went under contract we made some concessions in terms of electronics, smart home equipment, doors and locks etc.

Does it not make sense to file for taxes under  Sale of Business Property, since the property was bought as a single family and converted into a duplex? Or do we have to file for taxes using Schedule E for business.

Any help is appreciated. 

@Brian Van Pelt @Greg Dickerson @Genna Golden

Is typical cap rate on marijuana dispensary 8.5%?  

Because hard Money lenders with 50% down are asking 8% interest rate.  The cap rate on the dispensary is 8.5%.  With borrowing rate at 8% only the cash down part is making money.  

Thank you

Hello

When all banks are refusing, who can the investor approach for a loan to buy commercial property occupied by marijuana dispensary. It is 1 retail 100% occupied by dispensary.  Located in Colorado. I am ready to put in 40-50% but still banks are refusing.  What avenues can I pursue.

Thank you